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NEW YORK, JANUARY 15, 1916
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I
LIVE TOPICS DISCUSSED AT CONVENTION I
I
Tax Situation, Home Rule for Cities and Brokerage Regu¬
lation Among Subjects Chosen at Mid-Year Conference
ilBIKIIllil
AT the Mid-Vcar Conference of the
Real Estate Association of the State
of New York, held at the Hotel Mc¬
Alpin on January 7, many subjects of
vital interest to those interested in
realty came up for discussion. Charles
E. Manierre, of the Committee on Taxa¬
tion, congratulated the members of the
association on the fact that the tax situa¬
tion had reached a point where there
was general agreement that effective re¬
vision was imperatively necessary.
Mr. Manierre continued in part as fol¬
lows: "The trend of legislation is to¬
ward a continually increasing burden of
taxation in proportion to the popula¬
tion. The source of special ta.x, such as,
for example, the succession tax and the
franchise tax, which, as a make-shift,
have postponed the crisis, have reached
about their limit, and the State is now
faced with the necessity of constructing
a suitable and comprehensive system of
taxation under which all of the money
necessary for the purposes of govern¬
ment may be secured without undue
pressure upon any.
The First Step.
"It would seem that the first step
would be the enactment of a law such
as the bill submitted to the Legislature
last winter, taxing secured debts at a
rate not exceeding four mills annually,
and including for that purpose a listing
system and the collection of the tax by
the State instead of by localities.
"In this connection the people of the
State are to be congratulated that the
so-called Secured Debt Law, which was
not so much a tax law as a tax exemp¬
tion law, was repealed by the Legislature
last year. To permit, as this law did, a
payment of ;< per cent, and an exemp¬
tion thereafter through many years,
whatever the life of the bond, certainly
could not be deemed a tax measure. It
merely dried un the source of taxation.
"Fortunately, one Legislature cannot
bind a later Legislature and those who
took advantage of this law cannot com¬
plain if subsequently the exemption so
broadly granted is cut down to a com¬
paratively brief period of time."
Home Rule for Cities.
Laurence McGuire, president of the
Real Estate Board of New York, speak¬
ing of Home Rule for Cities, said:
"The Real Estate Board believes that
the Board of Estimate and the Board
of Aldermen, the City Legislative bodies,
charged with the control and the ad¬
ministration of the city government and
held responsible therefor by the peo¬
ple of the city, should have absolute
control of the expenditure of all monies
which must be provided for in the city
budget for borough and city purposes.
"As these boards are held responsible
for the tax rate they cannot be subject
to just criticism unless the ability to
control the tax rate rests with them. In
otlier words they cannot be held re¬
sponsible for the enormously increased
expense of the Board of Education if
a large part of such increase is the re¬
sult of mandatory legislation nor can
they be held accountable for the expense
necessary to carry out new functions of
government if the duty of carrying on
such functions is imposed upon them
by an act of the legislature.
"It was for these reasons that the
Real Estate Board last winter support¬
ed the Cromwell bill, which sought to
give control over the salaries and dis¬
bursements of city, borough and county
officials. The board will again support
legislation having as its object such
financial control.
Other Measures Supported.
"It w-ill also support measures for
transferring to the Board of Estimate
the powers of the Court House Board,
the Board of Water Supply and the
powers of the Public Service Commis¬
sion as far as they relate to the con¬
struction of rapid transit lines and here¬
after will oppose the creation of any
statutory commission to do any work
for the City of New York which can be
done by the city authorities. To this
extent the Real Estate Board is com¬
mitted to Home Rule for the City of
New York.
"New York City is peculiarly locat¬
ed. It is at the entrance to the con¬
tinent and is the gateway through which
the tremendous immigration has poured
into this country. It has frenuently
happened that while the stronger,
sturdier and more self-reliant emigrants
passed through to huild up great and
flourishing communities throughout the
L^nion, those who were not so fortunate
or so strong and self-reliant, either from
physical, mental or other causes remain¬
ed in New York Citv for their children
to be educated, their feeble and incomne-
tent to become a charge on the com¬
munity.
"It is from these people and those
who sympathize with them that the de-.
mand for new soci.-nl activities arises
and we have a condition today where
millions of dollars are soent annually for
functions of government not known in
New York City a few years ago when
its inhabitants were of a different tvne.
The constitutional limit of 2 per cent,
is a safeguard, yet it has been proposed
to take this from us by those who en-
couraee this element in nur community
and the debt incurrine limit of 10 per
cent, so wisely provided for in the con¬
stitution and so necessary to nrevent
citv bankruptcy is also extremely of¬
fensive to a certain element in our city.
A System of Checks.
"You will, therefore, see that although
there should be the largest measure of
home rule for local control over city
finances there must also, for the pro¬
tection of property rights, as essential
in a free government as persona] rights,
be some system of checks and balances
in local government.
"The desirable situation appears,
therefore, to be a strong local govern¬
ment with full control over local af¬
fairs and local finances, and complete
state legislative control not for tlie pur¬
pose of unnecessary interefence or to
impose additional burdens bvt tO pre¬
vent excessive burdens and to aflford
protection when necessary to threatened
property or individual rights.
"The subject of Districting Cities is of
such great importance that one hesi¬
tates to dismiss it in a few words. That
is, liowever, what must be done on this
occasion. I will confine my remarks,
first, to the broad general question oi
districting and regulating, and second,
to the difficulties that lie in the way of
putting this principle into practice.
Tremendous Problem.
"The public has come to realize that
the old haphazard fashion, good enough
when New York was a small town, has
left its mark and is not exactly the pro¬
cedure suitable to the New York City
of today or of the future. Public senti¬
ment, in other words, has crystalized
into a desire to regulate building, in so
far as this is wise and practicable; and
to say that a building must not be erect¬
ed to any heigh the owner may elect,
if that procedure is going to injure his
neighbor's building or perhaps a great
many buildings in the vicinity.
"From what I have said it may be
gathered that I personally agree that the
general proposition to district cities and
create zones in which only certain types
of buildings may be erected and only
certain kinds of business carried on, is
good. I think I may safely say that it
has general approval. To the extent re¬
ferred to above it has the endorsement
of the Real Estate Board of New York.
"That, however, is not to say that the
same endorsement will necessarily be
given to any or all of the detailed recom¬
mendations that the committee may
make. These recommendations, I need
hardly say, are being awaited with thje
keenest interest. The problem is a tre¬
mendous one. It requires thorough in¬
vestigation of all the factors entering
into the life and growth of the greatest
city in the world, a city where condi¬
tions are unusual and which presents
greater problems than any city in the
world. Real estate conditions, real es¬
tate history, the development of locali¬
ties, the influences that have brought
about radical changes, the growth of
population, the shiftin.g of residential and
business centers, transportation, railroad
and water front conditions, the relation
between the several boroughs—these and
many other factors must be studied in
the minutest detail, and all in relation
to the future growth of New York City."
Views of President Marks.
Borough President Marks said: "A
great measure of home rule must be pre¬
served in the city of New York. When
the population reaches beyond five mil¬
lions, with a prospect of growing to ei.ght
or ten millions, it is a fair question
whether the unit of government has not
become too great.
"The demand for borou.gh home rule
is a healthy one. There is no desire to
weaken the licensing function of the cen¬
tral authority; no thought of de-central¬
izing police, fire, education, or similar
city functions. But, on the other hand,
local physical works coming close to the
daily lives of the people, such as paving.